Incorporate In Minnesota

Known as the “Land of the 10 000 lakes,” Minnesota is an attractive state in which to incorporate. The Minneapolis-Saint Paul metropolitan area is home to almost 60% of the population and the center of business, internationally known art communities, education, government, and industry sectors.

Once a raw materials producer, this state has redirected its economy towards finished products and services.

Benefits of incorporating in Minnesota:

Protection of personal assets

Entrepreneurs incorporating in Minnesota should feel confident knowing that their personal assets are protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporation makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Your corporate name can boost your brand

Minnesota requires that C corporations and LLC not have names that are the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you choose a unique C-Corp or LLC name. A distinctive corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

In Minnesota, C-corps will be subjected to a corporate income tax based on the business net revenue and LLCs will be subjected to taxes based on its members’ personal revenue. However, every business entity is subjected to a composite tax applied only if the sum of Payroll, Property, and sales or receipts exceeds $500 000.

Residency Requirements

Minnesota does not have any residency requirements. Owners and directors do not need to live in state to legally operate a Minnesota company. Before your firm is legally eligible to operate make sure you possess all the required business licenses, permits, and tax registrations. Inc. Plan can help you stay in compliance with state law.

Other incorporating requirements

Both, C-Corps and LLCs must have at least one director/member. It is not necessary to provide director or member information in the formation document filed with the state.

Requirements for forming an LLC in Minnesota:

When forming a Limited Liability Company certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

LLCs must contain the terms “Limited Liability Company” or the abbreviations “LLC” and “L.L.C.”. The incorporation name must not be identical with the name of any other business entity, unless the other company is ceased from activity, if it is about to change its name or if a written consent is obtained.

LLC filing requirements

If you decide to incorporate an LLC in Minnesota, then you will file a formation document called the Articles of Organization. Additionally, Minnesota LLCs must file an annual report due by December 31st.

Required information for the Articles of Organization

The Articles of Organization must contain the name and address of a registered agent which resides in Minnesota, and which is available to manage legal and tax business documentation. For more help with the incorporation filing or for registered agent services call Inc. Plan (USA).

LLC taxes and fees

In Minnesota LLCs are taxed either as partnerships or as C Corporations, for state tax purposes. If an LLC chooses to be taxed as a partnership, then it will be charged based on its members’ personal income and not based on the net corporate income. LLCs may also be subject to the composite tax. The state also requires an EIN for Limited Liability Companies which hire employees and for opening a US Bank Account.

Requirements for forming a C corporation in Minnesota:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C corporations established in Minnesota are as follow:

Name requirements for C corporations

Minnesota allows organization names that include the terms “Corporation”, “Incorporated” or “Limited”, along with their abbreviations. However, the words “Company” or “Co.” cannot be preceded by the term “and” or the symbol “&”. The incorporation name must not be identical with the name of any other business entity, unless the other business is ceased from activity, if it is about to change its name or if a written consent is obtained.

Filing requirements in Minnesota

In order to form a C corporation in Minnesota, entrepreneurs must file a document called Articles of Incorporation and an annual registration form which is due by December 31st.

Required information for the Article of Incorporation

The Articles of Incorporation require a listing of the company’s authorized shares and par value, as well as the name and address of a registered agent with a physical Minnesota address. Inc. Plan (USA) can help you with the necessary filings and also with qualified registered agent service.

Taxes and fees requirements

Domestic and foreign C corporations are subject to a corporate income tax, an alternative minimum tax on income of $40 000 or more, and a composite tax. The corporate income tax is calculated based on the company’s net income at a 9.8% tax rate.

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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